Tuesday, May 28, 2013

TBT, MannKind, Interest Rates

First let me apologize for the lack of video, I spent days trying to figure out what was wrong and I finally found out last night that Google which owns the Blogger has had a software meltdown and is desperately trying to fix it.

With that said, lets move on, the blog of last week talked about a new position for many of the accounts. Mannkind (MNKD). This company is completing Phase three trials on a replacement for injected insulin. They have developed an alternative delivery using a puffer. The results of the last trial are due out in August. We currently have 40% and growing of the adult population in America that is either type 1 or type 2 diabetics,

If the phase three results are successful it would be a major break through. The next phase will be to find a distribution partner. My guess is that within 12 to 24 months the company is bought out at a substantial premium, Go to the company web site www.mannkindcorp.com for more information.

European Parliament last Monday passed a new law that will allow the central bank to take deposit in excess of 100,000 euros to deal with bank solvency. I warned you that Cyprus was just the start. The new law affects all 27 members of the EU. I can't imagine anyone or any corporation keeping more that 100,000 Euros in a bank in any of the 27 member nations.






Last Interest rates








As you can see below the yield on the 30 year T-Bond broke through the 3.25% level. The markets have tried  several times this spring to break through but failed. The next resistance is a yield of 3.40%. As a result of this move or hedge in TBT moved up $3.80 or 5% in one day. If interest rates continue to trend higher TBT will move twice as fast.  





As yields rise those investors, not us who were buying longer dated Treasuries, not us, will see substantial declines in their accounts. We are well protected against rising interest rates.

I hope I can get the video back soon, if not I will have to look for a different platform.

DanPerkins